Increasing production costs will result in the loss of more than 70 jobs at the Mount Owen mine in New South Wales (NSW), Australia.

Jobs of about 55 mineworkers, six tradespeople and 12 contractors are expected to be eliminated as per the plan, reported Newcastle Herald.

These 73 jobs account for about 20% of the workforce at the project.

Mount Owen open cut mine, located in the Upper Hunter Valley of NSW, is owned by the Swiss commodities major GlencoreXstrata, and is managed by Thiess.

Thiess spokesman said Mount Owen has been lowering its total coal production by cutting some of its operating areas amid industry-wide pressures.

According to the Australian Coal Association, nearly 9,000 jobs were axed from the NSW and Queensland industries over the last 1.3 years.